- Passenger cars a huge untapped opportunity
- 5G and artificial intelligence to play a crucial role
Telematics has become an essential part of driver safety mechanism and continues to solidify its place in the worldwide automotive industry. Advanced Video Telematics technology is fast becoming the poster boy of this fledging industry, making the most out of artificial intelligence and machine learning. According to new projections made by Mordor Intelligence in its Video Telematics Market Report, the installed base of Video Telematics will double in just four years between 2020 and 2024. In fact, nearly two million new Video Telematics units will be installed within just the two-year period between 2022 and 2024.
What is Video Telematics?
While telematics is an all-encompassing umbrella of communication technologies that connect information with telecommunications, Video Telematics specifically refers to the use of video camera systems that combine video surveillance and vehicle analytics via several high-resolution linked cameras with specialized sensors. These solutions combine machine vision and artificial intelligence to improve driver safety. Unlike traditional telematics solutions, which only capture the time and location of an incident, as well as possibly some of the mechanical reasons for the incident, Video Telematics solutions capture the entire picture inside and outside the truck cab, allowing more detailed analysis and demonstration.
Video telematics systems also include detection sensors. Vehicle owners can become aware of various safety hazards, such as exceeding speed limits, detecting stop sign violations, lane-drifting warnings, forwarding collision warnings, and more.
Market Opportunities in Video Telematics
Video telematics can be deployed either as a standalone system or as an integrated system. The standalone systems offer standard telematics data such as locations, routes, speed, and fuel efficiency. Many fleet management companies are partnering with standalone Video Telematics providers for ease of use and cost. According to Mordor Intelligence’s projections, the market for standalone Video Telematics systems will hit the landmark of 2 million installed base within the next two years.
Integrated video telematics systems provide an even larger and faster-growing market with their installed base expected to cross 10 million well before this decade ends. In an integrated system, hardware and software are all packaged together into one system.
Video telematics industry players have barely scratched the surface of a huge untapped potential lying within the Passenger Vehicles (PV) segment. While the use of video telematics is well established in the Commercial Vehicles segment, penetration in the total addressable PV market could be well below 0.05%. For industry leaders such as SmartWitness, Samsara Inc., and Trimble Inc., the PV segment could turn out to be a future gold mine with right product placement and a little support from regulators and governments.
Growth Drivers for Video Telematics
Video telematics industry players have barely scratched the surface of a huge untapped potential lying within the Passenger Vehicles (PV) segment. While the use of video telematics is well established in the Commercial Vehicles segment, penetration in the total addressable PV market could be well below 0.05%. For industry leaders such as SmartWitness, Samsara Inc., and Trimble Inc., the PV segment could turn out to be a future gold mine with right product placement and a little support from regulators and governments.
One of the primary growth factors in the Video Telematics industry is the need for safety and compliance-directed solutions. The use of Video Telematics allows organizations to identify and monitor potentially damaging operation costs arising out of driver behavior, vehicle productivity, or maintenance issues. This helps minimize any potential channels of affliction with stakeholders arising from non-compliance.
The expansion of telecommunications technology to 5G and beyond will impact the entire fleet management industry in the way it leverages Video Telematics. Organizations that leverage a mobile fleet management app will benefit from 5G the most. Increased speed of data transmission creates the opportunity to reduce latency in the solutions and increase the productivity of fleet managers.
The Video Telematics market is also benefiting from the advancements in technology. For example, the expansion of AI Dual Dashboard cameras has combined artificial intelligence (AI), edge computing, and forward and driver-facing cameras to record and analyze real-time data and provide alerts and notifications. Cloud connectivity in AI dash cameras combine the benefits of conventional dash cams with real-time monitoring and inputs via 4G internet and GPS data. Another example is the use of CAN Bus data to improve routing and efficiency, in addition to lower fuel costs with better service. These advancements are creating new opportunities, driving the demand for Video Telematics.
Rapid digital transformation triggered by the COVID-19 pandemic has spurred investments driven toward innovations and expansion activities within the industry. Many companies from varying sectors are investing in emerging startups to strengthen their market positions and expand their foothold. The growth opportunities in the market are encouraging acquisitions and strategic collaborations.
About Mordor Intelligence
Mordor Intelligence is a knowledge partner to over 4000+ enterprises across 20 industries, delivering precise industry data and actionable insights.
